IMF and Pakistan on the Verge of Financial Agreement

The International Monetary Fund (IMF) aims to quickly reach an agreement with Pakistan on financial support, as Islamabad has taken decisive measures to align its policies with the economic reforms sought by the IMF. The IMF mission chief for Pakistan stated that these measures include passing a budget that broadens the tax base and allows for higher social and development spending, as well as steps to improve the foreign exchange market and tighten monetary policy. Pakistan is negotiating for the completion of a ninth review of a $6.5 billion loan program, with hopes of releasing a $1.2 billion tranche. Finance Minister Ishaq Dar expressed optimism that an agreement would be reached and that the government was also working to secure the remaining $2.6 billion in pending funds.